History
Peter Lynch Growth is a growth investing strategy inspired by the approach of former Fidelity fund manager Peter Lynch, who wrote One Up on Wall Street. It looks for consistently profitable, relatively unknown, low-debt, reasonably priced stocks with high, but not excessive, growth. Among the criteria used, the strategy looks for stocks with a low price to earnings growth rate (PEG). Peter Lynch wrote: "If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them." Lynch managed Fidelity's Magellan Fund between 1977 and 1990 and during the time racked up average annualised gains of close to 30%. He urged investors to adopt a bottom-up investing process and "buy what you know". more »

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Pounds Sterling.

Stockopedia explains Mkt Cap £m...

Market Capitalisation only takes into account the value of the company's shares (equity), it ignores the amount of debt a company may have taken on and therefore isn't the best indicator of the company's size. The Enterprise Value adds the net debt to the Market Cap and is a better indicator of the minimum amount that an acquiring company may have to pay to buy the firm outright.

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the earnings yield.

Stockopedia explains P/E...

This is is the primary valuation ratio used by most equity investors. A high P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation.
Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question

The Growth in Earnings per share as a percentage change over the last trailing twelve month period.
Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability.

Stockopedia explains EPS Gwth %...

One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases.

Stocks with higher earnings-per-share growth rates are generally more desired by investors than those with slower earnings-per-share growth rates, though in general high growth rates have a tendency to revert over the longer term to more stable growth rates.

The Growth in Earnings per share as a percentage change over the last trailing twelve month period.
Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability.

Stockopedia explains EPS Gwth %...

One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases.

Stocks with higher earnings-per-share growth rates are generally more desired by investors than those with slower earnings-per-share growth rates, though in general high growth rates have a tendency to revert over the longer term to more stable growth rates.

The PEG ratio (Price/Earnings to Growth ratio) is calculated by taking the historic Price to Earnings Ratio (based on last year's diluted normalised Earnings) and dividing it by the consensus forecast EPS growth for the next year.

Unlike the Slater PEG Ratio or the Rolling PEG Ratio, this version does not use rolling PE ratio and growth rates, or incorporate the additional restriction that a companies must have 4 consecutive growth periods.

Stockopedia explains PEG...

The PEG is a valuation metric used to measure the trade-off between a stock's price, its earning, and the expected growth of the company. It was popularised by Peter Lynch and Jim Slater. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.

A PEG ratio of 1 is supposed to indicate that the stock is fairly priced. A ratio between 0.5 and less than 1 is considered good, meaning the stock may be undervalued given its growth profile. A ratio less than 0.5 is considered to be excellent.

The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility. Like all financial ratios, a company's debt ratio should be compared with their industry average or other competing firms.

Companies with high debt/asset ratios are said to be "highly leveraged". A company with a high debt ratio could be in danger if creditors start to demand repayment of debt.